Indian Market Outlook: Indian benchmark Index Nifty opened at 8173 yesterday and rose 46 points to make a high of 8219. Nifty sharply fell by 51 points from its high to make a low of 8157 and finally closed at 8165. FII, after a long selling spree ended the day yesterday with a net buying in the cash segment worth Rs.162 Cr for the first time since Nov 9th. The buying however is not very significant hence would need a day or two of continued buying momentum accompanied with above average buying in the cash segment to confirm a clear upside trend.
Today, the D Day for RBI governor Urjit Patel's second monetary policy, the markets already have high hopes of a interest rate cut. A rate cut would result in a weaker Rupee which would directly benefit the export oriented companies and rate sensitive companies. IT and the financial services sector would be the direct beneficiaries. Economists surveyed as per Bloomberg, expect RBI to reduce interest rates by 25 bps. Markets seem to have already factored in the upcoming move. Any surprise decision might result in a volatile move.
Nifty Dec Futures is expected to open at 8186 as per SGX Nifty at 8:30 am IST, which is 21 points above its previous close of 8165.
FII Activity for the year 2016:
The figures here clearly show that FII have been selling heavily to the tune of Rs. 19981.5 Cr in the month of November, the largest 1 month selling for the year 2016.
The month of December too has started on a negative note with FII selling worth 749.34 Cr. However, FII has bought for the first time since Nov 9th, signaling to some strength going forward.
Open Interest Index F&O and Cash Segment Activity
In cash segment, last trading day, FII have bought shares worth Rs.162 Cr and DII sold shares worth Rs. 164.70 Cr. A combined sell of Rs. 2.88 Cr. For this expiry, FII and DII together are net sell worth Rs. 447 Cr.
In Index Options, last trading day, FII have sold 1052 contracts, below its 1 year average of 18280 contracts. Pro have sold 6112 contracts, below its 1 year average of 27670 contracts. Combined there has been a net sell of 7164 contracts, below its 1 year average of 39000 contracts. For the current expiry, FII and Pro combined are net buyers of 62746 contracts.
In Index Futures, last trading day, FII have bought 3674 contracts, below its 1 year average of 9706 contracts. Pro have sold 3694 contracts, below its 1 year average of 4903 contracts. Combined there has been a net sell of 20 contracts below its 1 year average of 9401 contracts. For the current expiry, FII and Pro combined are net buyers of 4449 contracts.
International Market Morning Update: International markets along with S&P and Dax have regained strength. S&P made a high of 2112 yesterday, just short of its fresh all time high of 2113.75 made on 30th Nov. Currently S&P trades at 2209.
On the European front, German DAX has made a new high of 10840 for the year 2016. The breakout above its 2016 high of 10826, if sustains for next 24 to 48 hours would result in a continued upside rally.
In today's trading the Asian peers are trading Flat.
Data as on 6th December 2016. The % change is taken from previous day's close.
DISCLAIMER:
Research Team - Tel: 033-30010001, write to us at clientsupport@dynamiclevels.com to give feedback. Website:www.dynamiclevels.com
1. The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision
2. Past performance is not an indicator of future returns.
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